CFTC gives no quarter to FCMs

Last week litigation and enforcement matters took top billing in incidents impacting global financial services firms. Among other things, the U.S. Commodity Futures Trading Commission fined two different entities of one global investment bank for violations of its rules related to the handling of customer funds and position limits. In addition, a High Court in the United Kingdom struck down a proposed rule of the London Metal Exchange aimed at helping lower prices of aluminum worldwide which some claim have been artificially inflated because of long waiting times at warehouses to retrieve the widely-used commercial metal.

As a result, the following matters are covered on this week’s Gary DeWaal’s Bridging the Week:

About the Author

President of Gary DeWaal and Associates, LLC, a consulting firm specializing in the financial services industry and regulatory matters. Previously he served as Senior Managing Director and General Counsel of Newedge as well as a member of Newedge’s governing Executive Committee. Newedge was created by the merger of Calyon Financial and Fimat, which he joined in March 1995. Previously Gary worked for the CFTC’s Division of Enforcement.

In 2010, Gary was selected as one of the top five general counsels in the world by the International Law Office in association with the Association of Corporate Counsel. He is frequently quoted in the media for his thoughts on the international financial services industry. His website is www.garydewaalandassociates.com.